First Trust Exchange-Traded Fund VI

Transcription

1 First Trust Exchange-Traded Fund VI SUMMARY PROSPECTUS First Trust Nasdaq Artificial Intelligence and Robotics ETF Ticker Symbol: ROBT Exchange: Nasdaq Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its risks.you can find the Fund s statutory prospectus and other information about the Fund, including the statement of additional information and most recent reports to shareholders, online at You can also get this information at no cost by calling (800) or by sending an request to info@ftportfolios.com. The Fund s prospectus, dated February 22, 2018, as supplemented on June 28, 2018, and statement of additional information, dated February 22, 2018, are all incorporated by reference into this Summary Prospectus. June 28, 2018

2 Investment Objective The First Trust Nasdaq Artificial Intelligence and Robotics ETF (the Fund ), seeks investment results that correspond generally to the price and yield (before the Fund s fees and expenses) of an index called the Nasdaq CTA Artificial Intelligence and Robotics Index SM (the Index ). Fees and Expenses of the Fund The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. Investors purchasing and selling shares may be subject to costs (including customary brokerage commissions) charged by their broker, which are not reflected in the table below. Shareholder Fees (fees paid directly from your investment) Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees 0.65% Distribution and Service (12b-1) Fees (1) 0.00% Other Expenses (2) 0.00% Total Annual Fund Operating Expenses 0.65% (1) Although the Fund has adopted a 12b-1 plan that permits it to pay up to 0.25% per annum, it will not pay 12b-1 fees at any time before February 12, (2) "Other Expenses" is an estimate based on the expenses the Fund expects to incur for the current fiscal year. Example The example below is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example does not take into account customary brokerage commissions that you pay when purchasing or selling shares of the Fund in the secondary market. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain at current levels until February 12, 2020, and thereafter at 90% to represent the imposition of the 12b-1 fee of 0.25% per annum of the Fund s average daily net assets. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years $66 $236 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund s performance. Principal Investment Strategies The Fund will normally invest at least 90% of its net assets (including investment borrowings) in common stocks and depositary receipts that comprise the Index. The Index is designed to track the performance of companies engaged in the artificial intelligence ( AI ) and robotics segments of the technology, industrial and other economic sectors. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. First Trust Advisors L.P., the Fund s investment advisor, seeks a correlation of 0.95 or better (before fees and expenses) between the Fund s performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. The Index is owned by Nasdaq, Inc. (the Index Provider ). The Index Provider and the Consumer Technology Association ( CTA ) have jointly developed the eligibility and selection criteria and rules for the Index. The Index Provider also calculates and maintains the Index. The Index includes companies in AI or robotics that are classified as one of the following three groups: Engagers: companies that design, create, integrate, or deliver robotics and/or AI in the form of products, software, or systems;

3 Enablers: companies that develop the building block components for robotics or AI, such as advanced machinery, semiconductors and databases used for machine learning; and Enhancers: companies that provide their own value-added services on top of Engagers, but are not core to their product or service offering. Securities are selected for inclusion in the Index in the following manner: 1. the starting universe consists of companies listed on an Index-eligible global stock exchange (see 2.iv. below) classified as AI or robotics engagers, enablers or enhancers, as determined by CTA; 2. companies that do not meet minimum liquidity and eligibility requirements, including the following, are excluded: i. minimum worldwide market capitalization of $250 million; ii. minimum three-month average daily dollar trading volume of $3 million; iii. minimum free float of 20%; iv. securities not listed on an Index-eligible global stock exchange (a global exchange will be deemed ineligible if securities cannot be readily obtained either due to foreign investment restrictions or otherwise); 3. each remaining company is ranked by its CTA AI/Robotics Exposure Score, which measures the percent a company is exposed to the AI/Robotics sector within its respective engager, enabler or enhancer category (see "Index Information" for a discussion of how Exposure Scores are calculated); 4. the Index then selects the top 30 companies within each category, including ties, based on their CTA AI/Robotics Exposure Scores; 5. the index divides the overall portfolio weight between the three classifications as follows: i. Engagers: 60%; ii. Enablers: 25%; iii. Enhancers: 15%; 6. companies are equally weighted within their respective classifications. The Fund generally will invest in all of the securities comprising the Index, in proportion to their weightings in the Index. Additional minimum eligibility requirements and other information regarding the Index is described in this prospectus under Index Information. As of January 24, 2018, the Index was comprised of 88 U.S. and foreign common stocks traded on U.S. and non-u.s. exchanges, including American Depository Receipts ( ADRs ) and European Depository Receipts ( EDRs ) with market capitalizations ranging from $1.2 billion to $886.2 billion. As of January 24, 2018, the Fund had significant investments in Japan and in industrials and information technology companies. The Fund may invest in securities issued by companies operating in emerging markets. The Index Provider classifies a country as emerging based on a number of criteria including national income per capita, national market capitalization and national trading volume. Emerging markets are generally characterized by lower market efficiency and less strict standards in accounting and securities regulation than developed markets. Companies are classified as operating in a country primarily by their country of incorporation, domicile and primary exchange listing. The Index Provider reconstitutes the Index components semi-annually in March and September of each year for eligibility, using market data through the end of January and July. Eligible securities for the Index are identified as such using the eligibility criteria set forth in this prospectus under Index Information. The Index is rebalanced quarterly. Rebalancing is effective as of the market close of the third Friday in March, June, September and December. The Index Provider may, from time to time, exercise reasonable discretion as it deems appropriate in order to ensure Index integrity. Ordinarily, a security will be removed from the Index at its last sale price. Principal Risks You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. There can be no assurance that the Fund s investment objective will be achieved. AUTHORIZED PARTICIPANT CONCENTRATION RISK. Only an authorized participant (as defined in the Frequent Purchases and Redemptions Section) may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of institutions that act as authorized participants. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Fund and no other authorized participant is able to step forward to create or redeem, in either of these cases, Fund shares may trade at a discount to the Fund s net asset value and possibly face delisting. CURRENCY EXCHANGE RATE RISK. Changes in currency exchange rates and the relative value of non-u.s. currencies will affect the value of the Fund's investment and the value of Fund shares. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money. CYBER SECURITY RISK. As the use of Internet technology has become more prevalent in the course of business, the Fund has become more susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity.

4 Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund s digital information systems through hacking or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund s third party service providers, such as its administrator, transfer agent, custodian, or sub advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party service providers. DEPOSITARY RECEIPTS RISK. Depositary receipts may be less liquid than the underlying shares in their primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders of depositary receipts may have limited voting rights, and investment restrictions in certain countries may adversely impact the value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice versa. Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of the depositary receipts. EQUITY SECURITIES RISK. Because the Fund invests in equity securities, the value of the Fund s shares will fluctuate with changes in the value of these equity securities. Equity securities prices fluctuate for several reasons, including changes in investors perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. FLUCTUATION OF NET ASSET VALUE RISK. The net asset value of shares of the Fund will generally fluctuate with changes in the market value of the Fund s holdings. The market prices of shares will generally fluctuate in accordance with changes in net asset value as well as the relative supply of and demand for shares on the Exchange. Such fluctuation may occur particularly in times of stress and thus investors may pay significantly more or receive significantly less than the Fund s per share value when buying and selling shares. The Fund s investment advisor cannot predict whether shares will trade below, at or above their net asset value because the shares trade on the Exchange at market prices and not at net asset value. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for shares will be closely related to, but not identical to, the same forces influencing the prices of the holdings of the Fund trading individually or in the aggregate at any point in time. However, given that shares can only be purchased and redeemed either in-kind or for cash in Creation Units, and only to and from broker-dealers and large institutional investors that have entered into participation agreements (unlike shares of closed-end funds, which frequently trade at appreciable discounts from, and sometimes at premiums to, their net asset value), the Fund s investment advisor believes that large discounts or premiums to the net asset value of shares should not be sustained. INDUSTRIALS COMPANIES RISK. Industrials companies convert unfinished goods into finished durables used to manufacture other goods or provide services. Some industrials companies are involved in electrical equipment and components, industrial products, manufactured housing and telecommunications equipment. General risks of industrials companies include the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand and spending trends. In addition, they may also be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations, government regulations and e-commerce initiatives. INFORMATION TECHNOLOGY COMPANIES RISK. Information technology companies are generally subject to the following risks: rapidly changing technologies; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and frequent new product introductions. Information technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. Information technology company stocks, particularly those involved with the Internet, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance. JAPAN RISK. Because Japan s economy and equity market share a strong correlation with the U.S. markets, the Japanese economy may be affected by economic problems in the U.S. Japan also has a growing economic relationship with China and other Southeast Asian countries, and thus Japan s economy may also be affected by economic, political or social instability in those countries. Despite a strengthening in the economic relationship between Japan and China, the countries political relationship has at times been strained in recent years. Should political tension increase, it could adversely affect the economy and destabilize the region as a whole. Japan also remains heavily dependent on oil imports, and higher commodity prices could therefore have a negative impact on the economy. Japanese securities may also be subject to lack of liquidity; excessive taxation; government seizure of assets; different legal or accounting standards and less government supervision and regulation of exchanges than in the United States. Furthermore, the natural disasters that have impacted Japan and the ongoing recovery efforts have had a negative effect on Japan s economy, and may continue to do so. MARKET MAKER RISK. If the Fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares. Any trading halt or other problem relating to the trading activity of these

5 market makers could result in a dramatic change in the spread between the Fund s net asset value and the price at which the Fund s shares are trading on the Exchange, which could result in a decrease in value of the Fund s shares. In addition, decisions by market makers or authorized participants to reduce their role or step away from these activities in times of market stress could inhibit the effectiveness of the arbitrage process in maintaining the relationship between the underlying values of the Fund s portfolio securities and the Fund s market price. This reduced effectiveness could result in Fund shares trading at a discount to net asset value and also in greater than normal intraday bid-ask spreads for Fund shares. MARKET RISK. Market risk is the risk that a particular security owned by the Fund or shares of the Fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments. NEW FUND RISK. The Fund currently has fewer assets than larger funds, and like other new funds, large inflows and outflows may impact the Fund s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected. NON-CORRELATION RISK. The Fund s return may not match the return of the Index for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Index, and may incur costs in buying and selling securities, especially when rebalancing the Fund s portfolio holdings to reflect changes in the composition of the Index. In addition, the Fund s portfolio holdings may not exactly replicate the securities included in the Index or the ratios between the securities included in the Index. NON-DIVERSIFICATION RISK. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended (the "1940 Act"). As a result, the Fund is only limited as to the percentage of its assets which may be invested in the securities of any one issuer by the diversification requirements imposed by the Internal Revenue Code of 1986, as amended. The Fund may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly invested in certain issuers. NON-U.S. SECURITIES AND EMERGING MARKETS RISK. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries. REPLICATION MANAGEMENT RISK. The Fund is exposed to additional market risk due to its policy of investing principally in the securities included in the Index. As a result of this policy, securities held by the Fund will generally not be bought or sold in response to market fluctuations. ROBOTICS AND ARTIFICIAL INTELLIGENCE COMPANIES RISK. The Fund invests in robotics and artificial intelligence companies, which may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress, and government regulation. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights could have a material adverse effect on such companies. Securities of robotics and artificial intelligence companies tend to be more volatile than securities of companies that rely less heavily on technology. Robotics and artificial intelligence companies typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company s operating results. SMALLER COMPANIES RISK. Small and/or mid capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies. TRADING ISSUES RISK. Although the shares of the Fund are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained. Trading in shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in shares on the Exchange is subject to trading halts caused by extraordinary market volatility pursuant to the Exchange s circuit breaker rules. Market makers are under no obligation to make a market in the Fund s shares, and authorized participants are not obligated to submit purchase or redemption orders for Creation Units. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of the Fund will continue to be met or will remain unchanged. The Fund may have difficulty maintaining its listing on the Exchange in the event the Fund s assets are small or the Fund does not have enough shareholders. Performance The Fund does not have a performance history. Once available, the Fund s performance information, and information that gives some indication of the risks of an investment in the Fund by comparing the Fund s performance with a broad measure of market performance,

6 will be available on the Fund s website at The Fund s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Management Investment Advisor First Trust Advisors L.P. ( First Trust or the Advisor ) Portfolio Managers The Fund s portfolio is managed by a team (the Investment Committee ) consisting of: Daniel J. Lindquist, Chairman of the Investment Committee and Managing Director of First Trust Jon C. Erickson, Senior Vice President of First Trust David G. McGarel, Chief Investment Officer, Chief Operating Officer and Managing Director of First Trust Roger F. Testin, Senior Vice President of First Trust Stan Ueland, Senior Vice President of First Trust Chris A. Peterson, Senior Vice President of First Trust The Investment Committee members are primarily and jointly responsible for the day-to-day management of the Fund. Each Investment Committee member has served as a part of the portfolio management team of the Fund since Purchase and Sale of Fund Shares The Fund issues and redeems shares on a continuous basis, at net asset value, only in Creation Units consisting of 50,000 shares. The Fund s Creation Units are generally issued and redeemed in-kind for securities in which the Fund invests and, in certain circumstances, for cash and only to and from broker-dealers and large institutional investors that have entered into participation agreements. Individual shares of the Fund may only be purchased and sold on Nasdaq and other eligible securities exchanges through a broker-dealer. Shares of the Fund trade on Nasdaq at market prices rather than net asset value, which may cause the shares to trade at a price greater than net asset value (premium) or less than net asset value (discount). Tax Information The Fund s distributions are taxable and will generally be taxed as ordinary income or capital gains. Distributions on shares held in a tax-deferred account, while not immediately taxable, will be subject to tax when the shares are no longer held in a tax-deferred account. Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), First Trust and First Trust Portfolios L.P., the Fund s distributor, may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary s website for more information. You can find the Fund s statutory prospectus and other information about the Fund, including the statement of additional information and most recent reports to shareholders, online at ROBTSP062818